Cambodia is facing the risk of temporarily losing its non-tariff export
privilege to the European market, as the European Union (EU) on Monday
started the 18-month process under the Everything But Arms (EBA) trade
scheme, according to its statement.
The European Commission, which coordinates trade policy for the 28-
member EU, said in the statement that the decision will be published in the
EU Official Journal on Feb. 12, kicking off a process that would run until
August 2020.
The EU announced in October last year that Cambodia could lose its special
trade access to European markets under the EBA preferences, citing
concerns over human rights and labor rights issues in the country. However,
EU Commissioner for Trade Cecilia Malmstrom said: "It should be clear that
today''s move is neither a final decision nor the end of the process. But the
clock is now officially ticking and we need to see real action soon."
"Our engagement with the situation in Cambodia has led us to conclude that
there are severe deficiencies when it comes to human rights and labour rights
in Cambodia that the government needs to tackle if it wants to keep its
country''s privileged access to our market," she said.
The process consists of a six-month period of intensive monitoring and
engagement with the Cambodian authorities, followed by another threemonth
period for the EU to produce a report based on the findings, the
statement said. After a total of twelve months, the Commission will conclude
the procedure with a final decision on whether or not to withdraw tariff
preferences, it said, adding that any withdrawal would come into effect after
a further six-month period.
The EU is a major trading partner of Cambodia, especially for textiles and
footwear sector. As a Least Developed Country, Cambodia has enjoyed
exports of all products, except arms and ammunition, to European markets
with duty-free for decades. According to the EU''s data, Cambodia exported
products to the bloc worth of 4.9 billion euros in 2018.
Ken Loo, secretary general of the Garment Manufacturers Association in
Cambodia, said in a statement in October last year that over 46 percent of
Cambodia''s total exports of apparel and footwear were to the EU.
He said the garment and footwear sector employed around 700,000 workers
and another two million out of the kingdom''s total population of 16 million
also economically depended on the sector.
"A temporary suspension of the EBA or any short-term unilateral sanctions
may have long-term negative impacts on the lives of our workers and their
families," he said.
Source: Xinhua News, China Tuesday, 12 February 2019